Collective Bargaining

The Collective Bargaining Agreement: A Brief History

2008 – In efforts to promote labour management relations and improve social dialogue in the sector, Better Work Jordan helped to establish Performance Improvement Consultative Committees (PICCs) in factories participating in the programme. These committees, which have now spread to two-thirds of the 60 factories currently participating in the programme, consist of both management and union representatives and are responsible for developing and implementing the improvement activities of factories.

Briefing note | 30 September 2013
2010 - Migrant workers became free to legally join trade unions, vote in union elections, and participate in factory level worker committees leading to greater migrant worker participation in the garment union. Migrant workers now comprise over 50% of all worker committee members.

2011-2012 - The sector witnessed an increase in strikes and protests by migrant workers due to violations of labour rights, wages and working conditions of migrant workers in the apparel sector. This became a concern for the employers who realized that 2-way communications with their employees needed to be improved.

2012 – The National Minimum Wage Committee, which is comprised of government officials, employers and worker representatives, agreed to increase the minimum wage of workers. Given the particular circumstances of the garment sector, the government encouraged the employers and the garment union to negotiate an agreement for the implementation of the new minimum wage for this sector. After a month of negotiations, the two parties signed a series of agreements that increased the monthly basic minimum wage for Jordanian workers to JD 170 as of February 1, 2012 and then to JD 190 on January 1, 2013. For migrant workers, the basic monthly minimum wage stayed at JD 110, but seniority bonuses of up to JD 20 per month for migrant workers was agreed to. Interest in pursuing a sector-wide collective bargaining agreement emerged from these discussions to implement the new minimum wage.

November 2012– Better Work Jordan held a training for garment union executive board members and migrant worker representatives on the collective bargaining process and began working with the union on the development of a comprehensive CBA proposal.

February and April 2013 – Better Work Jordan held training sessions for union members on collective bargaining and on how to prepare for negotiations.

April 2013 – Twenty-one employers from nineteen factories attended a two-day training session on collective bargaining facilitated by two ILO expert consultants.

May 2013 – ILO experts from Geneva reviewed the contract language to ensure its compatibility with core labour standards. The ILO experts proposed amendments to provisions relating to union membership to render them consistent with international labour standards. These amendments were accepted by the employers and the union.

On 27 May, 2013 - A groundbreaking collective bargaining agreement is signed between the Jordan Garments, Accessories and Textiles Exporters’ Association, the Association of Owners of Factories, Workshops and Garments, and the General Trade Union of Workers in Textile, Garment and Clothing Industries.

July 2013 – Initial training for the garment union on contract administration is provided. Future training for both the union and the employers is planned on dispute settlement and contract administration utilizing the international experts provided by the ILO.

Ongoing – Better Work Jordan is helping to draft a model unified contract for migrant workers that meets ILO standards. The model contract will serve as a resource to assist employers and the union to negotiate a standardized contract for all migrant workers in the garment sector as called for in the collective bargaining agreement.